Australian billionaire's family feud returns to Federal Court

The two eldest children of Australia's richest woman and mining magnate Gina Rinehart have accused the billionaire of "stealing from her children" and attempting to conceal the misconduct, local media reported Monday.

Fairfax Media reported the parties were returning to the Australian Federal Court in a long drawn-out court battle that could result in the majority of Gina Rinehart's mining empire taken from her control.

In May, the Supreme Court appointed Bianca Rinehart as trustee over the Hope Margaret Hancock Trust, set up by her late grandfather - Gina Rinehart's father and pioneer of Australia's iron ore industry - Lang Hancock.

In this latest court saga, John Hancock and sister Bianca Rinehart said their mother wrongfully transferred lucrative mining assets out of a second and unknown family trust to the Gina- controlled Hancock Prospecting after his death.

Christopher Withers, the barrister for John Hancock and Bianca Rinehart, said the trust in question is one of two that was set up by Lang Hancock to bestow a 49-percent share in Hancock Prospecting on the children while Gina was to have 51 percent.

Withers said Gina Rinehart transferred assets contained in the trust to Hancock Prospecting through a "series of complex maneuvers" including a "wholly fraudulent debt reconstruction" and share buy back that boosted her holdings in the company from 51 percent to 76 percent.

The party is seeking an account of profits for the mines as part of their claim.

The three-day hearing will determine if the case should be stayed, resolved through closed-door arbitration - as Gina Rinehart seeks - or be heard by the court.

In pressing for the court to hear the case, Withers said referring the dispute to arbitration could result in lengthy delays and exacerbated costs in circumstances in which Hancock Prospecting could control the amount the children have available for arbitration.

Withers said Gina Rinehart's previous actions to conceal her misconduct from public scrutiny while oppressing her children prevent the judicial determination of the case and deprives the children of the forensic advantage of open justice.

The hearing resumes Tuesday. Endi